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What's the deal with Amazon's monthly payment plan?

Make things easier on your wallet.
By
October 21, 2022
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Edgar Cervantes / Android Authority

There isn’t much you can’t buy on Amazon, including big-ticket products like flagship smartphones, laptops, TVs, and more. If you’re worried about saving up before making an expensive purchase, Amazon is making things a little easier with its monthly installment plans that break up the payment into more manageable chunks. Here’s everything you need to know about Amazon’s monthly payment plan.


Amazon monthly payment plans: An overview

amazon monthly payments how to find
Ankit Banerjee / Android Authority

Amazon offers a monthly payment plan to specific customers on select products. The good news is that Amazon doesn’t run a credit check to see if you qualify for the program. Instead, eligibility depends on information related to your Amazon account, like your purchase history. You don’t have to be an Amazon Prime subscriber to qualify for monthly installments.

While Amazon US doesn’t explicitly state any requirements, the eligibility criteria in other markets are a good indicator. In Canada and the UK, Amazon says that you need to have an Amazon account for at least a year, have a valid credit card associated with your account, and have a good payment history to be eligible for monthly payments.

How do the plans work?

amazon monthly payments example
Ankit Banerjee / Android Authority

The plan’s duration is up to Amazon if you qualify for monthly installments. The term duration can be anywhere between 4 to 12 months, and the cost of the product is divided equally into a smaller monthly payment. You will have to pay the initial down payment, delivery charges, and all applicable taxes when you purchase the item.

Amazon will charge your card monthly for the remaining payments for the next three to eleven months. You also have the option to prepay an installment or the rest of the item’s price early.

Yes, you can use a debit card for your Amazon monthly payments if it allows pre-authorized payments.

What can I buy?

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Edgar Cervantes / Android Authority

Most Amazon products, from smart speakers to Fire TVs, are usually available for purchase with a payment plan. You might also see products like smartwatches, laptops, headphones, cameras, shoes, jewelry, and more, depending on your eligibility. The one condition is that the item has to be shipped and sold by Amazon. You will not see the option for Amazon’s monthly payments with third-party sellers.

The list of products you will see changes depending on your eligibility and the product’s price. An excellent way to check which products qualify, and your eligibility, is to search for “Amazon monthly payments items” on Amazon. You will see a line below the product’s price that says “monthly payments of $X/month for Y months” if you can purchase a product with monthly installments.

Are there any fees or interest charges?

No, Amazon doesn’t charge any fees or interest charges when you use its monthly payment plans. Only the cost of the item is divided into equal monthly payments, while delivery charges and all taxes are charged as a part of the initial payment.

What happens when I miss a payment?

One of the conditions of eligibility is to have a credit card linked to your account that is valid for at least 20 days beyond the end of your payment plan. If a payment fails on your card, Amazon will try and charge another card stored on your account to complete it. If all payment options fail, Amazon reserves the right to pursue any method available to collect the outstanding balance. Amazon can also suspend or terminate your account and deregister any Amazon devices you have linked to your account.


Should I buy something using Amazon’s payment plan?

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Adam Birney / Android Authority

As long as you meet the eligibility criteria, buying something using Amazon’s monthly installment plans is not a bad idea. You still pay the same amount with no hidden interest charges or fees. The installment plan lets you spread the payment out a few months to a year to make it easier on your wallet. Of course, with the way the list of qualified products and your eligibility changes, it’s difficult to pre-plan your purchases.

Remember that you might not be able to make multiple big-ticket purchases at the same time, though, since Amazon will limit how many simultaneous installment plans you can have.

Read more: How to redeem an Amazon gift card


FAQs

You will find all the information about an ongoing payment plan on the product order page.

Yes, you can use Affirm on Amazon. This is separate from Amazon’s monthly installments plan, though. Affirm offers longer durations with re-payment plans of up to 48 months. However, there is a 10% to 30% interest charge and processing fees.

Klarna isn’t an official payment option on Amazon. But you can use the Klarna app to make purchases on Amazon and split the payment into four interest-free payments over two months. All purchases are handled through the Klarna app and not on Amazon.

You don’t have to be a Prime subscriber to be eligible for Amazon’s monthly installments plan, as long as your account is in good standing.